U.S. stocks waver amid legal fight uncertainty

U.S. stocks wavered and traded mostly lower on Monday, as investors became cautious after a recent rally in equity market and uncertainties of a legal fight against U.S. President Donald Trump's travel ban weighed on Wall Street sentiment.

At midday, the Dow Jones Industrial Average ticked down 2.37 points, or 0.01 percent, to 20,069.09. The S&P 500 lost 3.23 points, or 0.14 percent, to 2,294.19. The Nasdaq Composite Index shed 0.54 points, or 0.01 percent, to 5,666.22.

The U.S. Justice Department filed a notice of appeal seeking the reinstatement of Trump's controversial travel ban on refugees and citizens from seven Muslim-majority countries.

The latest turn of events triggered a new round of fights over the legitimacy of the ban, which has not only sparked mass protests across the country, but also created panic and drawn criticism around the globe.

U.S. stocks posted solid gains after Trump won the presidency election as investors bet that he would pursue massive corporate tax cuts, deregulation, and infrastructure spending.

Analysts said some profit-taking might be taking place after the three major indices lingering around all-time highs last week.

Meanwhile, investors continued to focus on the fourth quarter earnings of 2016.

The latest data from Thomson Reuters on Friday showed that the S&P 500 companies' blended earnings in the fourth quarter of 2016 are expected to rise 8.1 percent year on year, while the revenues are forecast to increase 4.2 percent.

There are no major economic reports due Monday.

U.S. stocks closed mixed for the first week of February, with the Nasdaq setting new closing records, as investors mainly digested a batch of economic data and corporate earnings. Enditem